Tax consolidation dream comes true

After 20 years of pushing to consolidate taxing districts in St. Mary Parish to decrease property taxes, industry leaders are finally getting to see that vision become a reality.
“We feel like the only way to make it through this time is through consolidation,” St. Mary Industrial Group President Greg Roussel said.
The group has roughly 140 member businesses and acts as a voice for local industry and liaison with local government.
St. Mary Parish President David Hanagriff said Monday that parish leaders are working toward consolidating some of the over 40 taxing districts in the parish to save money during the economic downturn. Consolidation will allow the parish to reduce its millage rates for property taxes.
“SMIG has been talking about consolidation for 20 years,” Roussel said.
Parish officials recently began the consolidation process by combining two sewer districts and a water district into one commission.
Parish government has been relying heavily on property taxes because of the decline in sales taxes during the past few years, Roussel said. But the economic downturn is causing businesses and residents to struggle too, so SMIG is trying to find ways to reduce property taxes as well.
SMIG only wants to consolidate taxing districts where doing so won’t affect services provided.
Officials are in the midst of getting “efficiency studies from each of the taxing entities” in the parish, he said.
Group leaders will make recommendations to the Parish Council regarding which districts could be consolidated into one, Roussel said. Nicholls State and a private firm are assisting in the economic efficiency studies.
By consolidating some districts, they can share equipment and save costs, Roussel said.
Over the years, more and more taxing districts have been formed. The parish now has too many districts, and “it’s out of control,” Roussel said.
“It would be more manageable in this economy to consolidate,” he said.
Roussel recognizes that consolidating certain districts with others may not be feasible because they’re not closely related enough.
“But the things that are related, and the things that can be related, you save by not having all these multiple boards,” Roussel said.
On Sept. 14, the Parish Council unanimously approved a proposal by Hanagriff to consolidate Waterworks District 5, Sewerage District 5 and Sewerage District 8 into one entity, Water and Sewer Commission 3.
Waterworks District 5 includes Franklin, Garden City, Centerville, Bayou Sale, Verdunville and the Patterson area. Sewerage District 5 covers Centerville, Verdunville, Bayou Sale and Garden City. Sewerage District 8 includes the Patterson area.
Forming the new commission will let the parish reduce its millage rates, which determine people's property taxes. The new commission recently held its first meeting.
The current property tax rates are 4.6 mills for water district 5, 5.37 mills for sewer district 5, and 6.44 mills for sewer district 8, which generates $881,000. Hanagriff expects the newly-formed Water and Sewer Commission District 3 to levy 8 mills and generate $890,000.
Voters will be able to approve Water and Sewer Commission 3’s millage rate after the commission selects an official rate to be voted on by residents, Hanagriff said. Once the new millage passes, the millage rates for the three former districts will no longer be levied.